>> what? >> the price action of al abegan today. >> interesting. i'm melissa lee. thank you so much for watching. see you back here tomorrow at 5:00. "mad money" with jim back here. in the meantime, jim cramer with the ceo of wells fargo, up next. >> my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to kra america. you want it make friends, i'm just trying to make you money. my job is to educate and teach. so call me. or tweet me. @jimcramer. get used to it, folks, we're not in kansas any more. we're in oz. where the markets are really exciting with the wild gyrations we haven't seen in agees.
it is indeed a horse of a different color with today's color being very much red. down tumbling 258 points. nasdaq would have been lower if it weren't for apple. what happened? where did the boring days go to? i think they went the way september always seems to play out. ninth month in the year statistically worst month of the 12. always seems to play the role of the wake-up call. people come back from summer, particularly in an election year, survey the land skate and recognize there is more risk than they thought. sure, averages are up more year to date. nasdaq with a new high just last week but a new and very palpable sense of gloom out there. one that was echoed today at cnbc's delivery alpha conference. a major investor where big money speaks his mind and that mind was definitively, and i can say this without question, negative. in some ways i can't disagree. though i do not, on the record,
do not share the depth of despair of so much of the speakers i heard today. we're stuck in a weird moment where whoever speaks last, causes gyrations that are magnified by a month that so often ends the complacency of a summer rally. if only wauz the pain is back, the most people feel like the pain is just not worth the gain. again, this moment of angest is understandable. think of the major variables out there. federal reserve officials each with the tune of desperate and unelected voices who wield tremendous power over stock prices. we ought to have trading cards to keep track of them so we know who the heck they are. you know what? my crack staff made them up. we know for instance that fed chief janet yellen's card has real value. like an honest wagger. same for the stanley fisher
card. she are potential hall of famers, hofors as they call them and they want to get home to the rate hikes. then a week ago tuesday, john williams said he wanted a fed increase sooner rather than later. to me sooner means next week's meeting. on top of that, wow, here is the shocker. last week, eric rose enburg turned had market upside down. by suggesting it would be a good idea, a hawk. place for boston. switch from dove to hawk crushed the market even as daniel tarullo made comment to make him sound cool to a hike but that wasn't a new position to the hawkish stance controlled the day and precipitated the 400 point decline. thanks for watch pl maybe he was the reason why they lost so badly last night. anyway, then yesterday however,
fed governor lyle brainard of washington along with dennis lock hart of atlanta and neil cashkara of minneapolis were dovish saying they want it keep the bats on their shoulders. even if it didn't make up for everything it lost on friday, hence the name of negativity last night. fortunately these speakers will shut up now thanks to self-imposed lackout as we head into last week's fed meetings. without them, nothing trade-off of. no earnings. no important pronouncements. no, check that. the international energy agency last month announced they thought the big oil glut was easing. came out this morning and said it wasn't easy. oil got hammered mercilessly. down a buck 39. just below $45 again. and opec reduction and decline of 100,000 bare aels day and
took out next year's growth as well. 1.3 million barrels a day still. kiboshing the rally from yesterday. and the market took a header as oil pictures got a lot perkier. and i would be remiss if i didn't mention the news from wells fargo that isn't exactly reassuring when it comes to putting trust in our financial institutions. here we go again. more on that in a moment when we interview ceo john stuff. the market took its cue from wells in some wileys. never mind the early read on apple's. so i sneeze. anyway, sorry, tim cook, right in the middle of what i was saying about apple but apple's new iphone where t-mobile and sprint said the launch is much, much better than expected and i have been checking around and let's say verizon and at&t seem to see a very similar demand. what do you do here? sometimes the case is right in front of you. that was today when i listened to money manager bill miller at
delivering alpha. i still regard that as a great benchmark, he did something because the ten-year bond yielded 9% and six-month treasury bill worth 6%. these days, fixed income, account stocks, different picture. uncompetitive 1.73% and six-mobile .53%. even though the saip 500 is more expensive now than a priced earnings basis then, he told the crowd that stocks are, and i quote, stupidly cheap while bonds are ridiculously overpriced. he reminded us, and i quote again, outlook for the u.s. economy is solid. among the best in the world. low inflation and low unemployment. record products, record gdp, record household net worth,ant quote. he wants to sell bonds and buy stocks for those reasons.
tim doesn't have enough to upset the picture. i went to err on the side of caution. i don't want to risk making a big bet here on stocks. right now i prefer to have a higher cash position as i have for my charitable trust. you can follow along on it. and yesterday i suggested raising cash again with what i thought was a good game plan to sell into that strength. still, here is the bottom line. i think bill miller is on to something. when the competition of stocks is that terrible, when things are descent out there, maybe we shouldn't take our cue from the last fed player at bat. let me see. yeah. yeah. you have this card. this guy's card. there are a hundred thousand fewer barrels of oil used everyday. just take a tanker and stick a hundred thousand barrels on it. instead, take our cue from the value that stocks are offering and by the way, as they come down, they get cheaper. not more expensive. janice in texas, janice? >> hey, jim. >> hey, janice. >> yahoo! i bought about two years ago, because i wanted the
asian exposure to the search industry with ali ba ba. >> yes. >> i want some verizon, so should i stay or should go? >> that's interesting. verizon has a good yield, yielding 4.5. treasuriries 1.7 for tenure. i think the company is doing well. they are selling a lot of phones. i applaud you for getting yahoo!. this helps run alley ba ba, that's all that yahoo! really is now. you make that switch out of yahoo! into verizon and i think you'll be very happy. all right, want to trade a mint fisher? i've got a mint fisher here. for a yellen. geez. this could be a swap. time to sell your collection of fed trading cards and let's put a little less emphasis on these guys okay? could this guy take the market
down 400? i didn't even know he add card until today. instead focus on the values can you find in this increasingly volatile market. potential rate hike on the table. are investor worries warranted? then my exclusive with wells fargo ceo. after last week's revelation of one of the largest banks creating millions of fake accounts. maybe, maybe not. and not all of the volatility of this market comes from the fed. i'll tell you about the stocks in the sites of both trump and clinton. remember when it used to come with a stick of gum? now that had value. stick with cramer. >> don't miss a second of "mad money." follow @jimcramer. #madtweets. sent e-mail to cnbc.com. or give us a call at
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terrifying market? the noigs that federal reserve might tighten rates into what seems might be a weakening economy. last night i told you i didn't think a rate hike next year sometime sooner than later. people are feeling a lot less complacent. i think we need a more imperial quote. at some level it is justified. too much? too little? let's find out. that's why tonight we are going off the charts with mark sebastian. he is a brilliant technician, founder of optionpit.com. as well as my colleague at realmoney.com. the vix measures the perceived volatility of the saip s&p 500 in the near future. take a look at chart of the volatility over the past year. sebastian points out, the last time the fed tightened in december, we got a big spike in
the vix. which continues into january and february timeframe as stock market sold off big time. sebastian noticed we off the wren see the vix pop ahead of the labor department payroll reports. that makes sense because the key numbers, most important piece of dwrat for fed watchers, a always concerned about potential rate hike. however, as far as sebastian is concerned, see the real problem right now is that fed keeps sending these mixed signals. just can't keep their mouths shut. we have tremendous uncertainty. that's why it is spiking within recent day answers 19.6% move higher. we probably won't get any clarity until next week's fed meeting and it won't necessarily be good clarity. that said, it's not as if nobody saw it coming. check out this chart of the s&p 500 paired with the volatility index over the last six weeks. toward the end of august, the vix did start it creep higher. can you see this. see that creep higher?
you got that? s&p is oscillating and moving towards new highs. remember this kind of action is a warning sign. according to sebastian, the s&p 500 is higher the vix should go lower. that the sign after healthy market. but when it rallies with the s&p it shows us something bad could be lurking. it didn't take a genius to figure this out. given we knew next fed meeting was coming and less time we heard from yellen three weeks ago at jackson hall, she talked about tightening. no surprise that the s&p plummet he. the action over the past few days, sebastian thinks this will stay elevated and will deal with a choppy market like in december of last year. of course the last time the fed tightened. what does that look like? take a gander at the next charts. this is over the volatility total index over the next 12 months. i think is instructive.
ahead of the fed meeting december 15, no one is sure they would raise markets. when they did finally have a great december, the big spike, see the spike in december, stock market didn't like it to say the least. how else do we get a handle on the level? sebastian likes what is known as vix volatility index or vivixovevix in some case chess is perceived volatility in the volatility index. maybe you took this class. remember calculus? think of the vivex of the volatility index. if the vix measures the loss of the vol tist then the vivex measures acceleration deceleration. now he is bestian suggests when vivex moves higher, it is done here, when it moves higher, that's the sign the smart money continues.
the hedge against volatility. me and big boys think things can get worse. according to him last friday's rally, that is one of the nastiest moves he has ever seen. the last time we saw the vivex up like this was surprise, surprise, again, around the time of the fed of december of last year when they tighten. you know i think that's the analog you should be focused on. remember we talked about it almost everyday last week. talked about it this week. this sells he is dastian they are scared and looking for protection. i don't blame them. i'm thinking down 7% if things go awry. when does all this end? the fed could put the market in a much more positive frame of mind. hold off on tightening next week and clear calming statement. how can you tell the chaos is ending simply by ending the chart of the vix? when everything went crazy, sebastian managed to nail the bottom when we talk to about it. by looking into the s&p 500. look at this chart. remember, normally the vix goes up when the s&p goes down, okay?
so when the market's declining but the vix is too, or standing still, that could mean the average is ready to rebound on a sustainable fashion. voila, that's exactly what happened. the action of volatility index is interpreted by our expert, mark sebastian, suggesting turbulence is far from over. keep an eye on the vix. if it starts to go down along with the s&p 500 that could signal the fear of the fed has finally baked in and is time to start buying. it's not yet, though. for now, as i've been stressing for weeks, it just ain't worth the risk to be a hero. the reward's not there. fix your eyes on the vix. there could be serious implications. more "mad money." 3 in 5 americans say this is the biggest wreck to the economy. no, not the fed. the election. i will tell you how the race to the white house is impacting
your portfolio. scorching up 30% year to date. one of the best i follow. can he keep the momentum alive? i'm taking the pulse of the company when i talk to the ceo. just ahead, ceo of wells fargo. what's the plan to fix investor trust in the company? where does the ceo stand with the company? what's the news about the company stocks? now that it isn't setting goals about cross selling. i'll find out if this is the first step to build consumer confidence or if things are still up in the air. do not miss this interview. stick with cramer.
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sanction from a number of regulators including the federal protection bur buro. the stock is down big since the beginning of last week precisely because of the nature of the scandal call niece question what is going on at a company that prides itself on the way it treats customers. top that, wells is going to have to change practices going forward. we don't know how bad that will hurt the numbers. this raisees a lot of questions. let's go right to the top. chairman of wells fargo. thank you for coming shown the. i appreciate it, sir. >> jim, thank you for having me. before we start, or as i start, i want to tell you, your audience, and our customers, what we are sorry. we deeply regret any situation where a customer got a product they did not request. there is nothing in our culture, nothing in our vision of values that would support that.
it is just the opposite. our goal is to make it right by a customer every time. if we don't do that, we feel accountable. >> i read these headlines, john, i have backed you, and particularly you, i think you're a community bank. you started all the way. going all the way up. but i see things like wells fargo to be sanctioned for allegedly aggressive sales tactices. paying $175 million for outrageous sales. and then today, i see wells fargo ceo defends bank culture. lays blame with bad employees. that's not you. you don't lay blame a bit. you're the -- you told me you're the vince lombardi. vince lombardi never blamed the linemen. >> let me tell you, say one more time, we take accountability for not getting it right a hundred percent of the time. let me tell you a little bit about our business. >> absolutely. >> we have at any one time 100,000 team members in our branch and retail bank network.
and we hire people and people turn over. of those 100,000, the vast a majority do the right thing. their life's mission is to help people. i love these people. every year, on average, for the last five years, 1,000 did not do the right thing. >> let's hit the numberes. 1,000 out of how much? >> out of 100,000. >> okay. >> but that still is 1,000 too many. and that is over five years. that's how you get to the 5,300. and we have actually increased our investment in compliance and different tools to help make sure that this becomes a smaller and smaller number. but all levels of management feel responsibility to make sure that we do it right every time. >> okay, i'm looking at your code of ethics. we have a responsibility to always act with honesty and integrity. when we do so we haern the trust of our customers. we have toer than trust everyday by hope and honest communication
and holding ourselves accountable for decision answers actions. a lot of people told me you have to hold yourself accountable and kari holed it who collected $120 million in shares, we're not sure when she retired and to do that it may mean some people say you have to resign. >> jim, i think the best thing i request do right now is lead this company. today we made an announcement about product sales goals. you know, we never intended for product sales or any dynamic or any part of a management system to be misinterpreted. and again, the vast majority do the right thing. so we took that off the table. because even one instance of a sale or a product is one too many. we took that off. but also it has a good business purpose. we still love cross sale. we still love depth and
relationship. but one of the tools of getting there, we think today doesn't make sense any more. and also the business is changing. 85% of our customers, a hundred percent of our customers in the past bought things in the store. today it is only 8 will 5%. >> at the same time, john, you're a buck stops here kind of guy.will 5%. >> at the same time, john, you're a buck stops here kind of guy.ill 5%. >> at the same time, john, you're a buck stops here kind of guy.ll 5%. >> at the same time, john, you're a buck stops here kind of guy. 5%. >> at the same time, john, you're a buck stops here kind of guy. 5%. >> at the same time, john, you're a buck stops here kind of guy.5%. >> at the same time, john, you're a buck stops here kind of guy. didn't the buck stop with you in this? >> of course. and i'm the leader, i get it. i said right off the bat, when we don't meet our goals of 100% right, i'm accountable and i'm leading this company and leading it forward through this. i want it make sure that every customer knows when they come into one of our branches, deal with one of us on the internet, whatever the case is, we are a hundred percent on their side. jim, an unwanted product or unused product doesn't help us. doesn't help customers. but the opposite, ones used and
val valued, they help all of us. >> okay, i understand that. but i also want to know, why, if you have call back provisions, if there are call back provisions, why wouldn't someone like kari holesaid it, why wouldn't you want to reclaim some of her stock? even if she worked there for many, many years? because someone oversaw -- we just can't go after the low guys. that's not how we work. >> of course not. >> to the extent, that's a consideration -- to the extent that a consideration, we have a process. >> okay. has james quickly, head of the aughtity committee wab has he looked that the has pena, corporate response committee looked -- >> to the extent that's a consideration in the process. >> okay. let's go through. new york says 2 million customers are explicitly defrauded. is that true or false? >> so we hired an independent third party accounting firm to look at all of the product that our customers opened.
>> okay. from 2011 through 2015. that is a four-year four-month period. they reviewed 93 million accounts opened. >> okay. >> and of that, 2 million accounts that they identified where there was a possibility that they could not rule out that they either authorized or unauthorized, we didn't know. we couldn't tell from the data. >> and third party not hold to you. >> couldn't tell. >> and that is not explicitly defraud. >> no. just 2 million they couldn't rule out. sometimes savings account open and close within a 30-day period. we said to ourselves, we don't want one dime of income if we don't know if it is authorized or unauthorized. so then, we -- they look for
that and we found $2.6 million of fees for 115,000 accounts averaging about $25 per account. we sent that money back. we apologized. and even though that's a small number compared to everything. it is -- we don't want one dime of income that we don't earn. that is unacceptable. >> and 5300 people were not fired after the "l.a. times" did a 2013 piece wells fargo cooked their sales. pressure comes at a cost. >> we know running a business that not everyone will do everything right. every minute of everyday. that's why you build compliance programs. that's why you do training. that's why you do coaching. unfortunately, 1,000, 1% of these 100,000 who are in a seat at any one time in the year, they didn't get it right. but i have to say, the vast majority dot right thing everyday. >> why would anyone risk their
career at wells fargo for $25 bucks a throw, john? >> i don't know how to explain that. i don't know how to explain human behavior. but i know we own it also. we have -- >> we meaning u? or kari tollsaid it who who is we? >> let me start with me. to the e. tent we don't get it right 100% of the time, because that's our goal, if we don't neat plan, i'm responsible p.m. i'm accountable. anybody else in the company, we all feel when we fall short of that plan, we feel accountable and responsible. and we're taking action. we're investing in more compliance. we have a couple new tools out there. if a customer is an accounts open for a customer they can e-mail within one hour. >> okay. if that's the case you did not -- like this headline you think is misleading. you did not lay blame with bad employees. you're taking responsibility for this. >> of course. i didn't say that.
we are all in this. >> but if you did change your rules, when i speak to you last, you were thinking you were doing everything for the customer. why do you have to to change the rules on cross sale if you were always doing what was right for the customer? >> great question. we are not abandoning cross sale. we love cross sale. cross sale is for deep long-term relationshipes. we love that. one of the tools are changing. and that's the tool of product sales. we will have no more product sale requirements any place in the retail bank. because we never -- some people might misinterpret those, even if it is a few people, that somehow that's our motivation. it is not. we have been migrating that way. we have things like customer service, customer loyalty, usage, things that customers value are some of the things along with -- >> why -- you had 10 accounts --
pieces of business per retail banking. that's one of the reasons why warren buffett always liked it. but piper jaffray said you may be doing a material change to hurt earnings. do you expect mr. buffet to increase it above 10%? >> i'm not making any proclamations or assumptions on the future but talking about earnings. >> okay. >> without giving you any guidance, i believe we're a growth company. we were a growth company yesterday. we are a growth company today. and we will be a growth company tomorrow. this idea of deepening relationships and doing more business with our customers who we just love is as firm today as we have ever been. >> dick vos vich in 2014 told squawk box that the government never goes after the actual wrong doers because that's too hard. he says it takes a long time to do so. have you cooperated with the
authorities to actually give up the people in -- high branch levels who may have encouraged something you clearly don't want to have happen. >> first of all, of the 5,300 people who we terminated because they did not live up to the values, it was banksers, branch manager and in some cases managers of those managers. secondly, with respect to cooperation, when we did this full reveal, every issue right, you know, we shared that with our regulatory -- >> you did? >> absolutely. >> if they wanted to take action you would have cooperated. >> in fact we worked hard to share everything that we knew with them and we worked hard to get to the agreements that we had that were announced -- >> is there any way this is concentrated. because l.a. got $50 million or there are other cities now going to go after wells fargo and we're the tip of the iceberg moment rather than through the
so-called news cycle. >> again. if we go back to this interpendant review. 93 million, 2 million, 115,000, and now we will be vigilant. continue to look. but for that period of time we think that is all settled. >> okay. i think i just literally, because this is a social media generation, john. i just quizzed twitter. was it ignorance. this is the question people wanted know ask you over and over again. i the ask. this is what people who watch the show want. was it ignorance of the practice thaping or was it your culture? >> i don't think it is either. i any we've been working on this for a long time. we're making investments in compliance, in training and so forth. we've gotten, seen the incidence come down. so and today again, that's what we are making today about taking
product sales goals off the table is i think another way of taking risk off the table. >> was your bonus ever tied to those product sales? >> all of my compensation is in public record in our proxy. and there's no anything tied to product sales goals in my compensation or or any of the named executive officers. >> you will be in front of congress. it is hostile environment for banks. john, will they give you this amount of time to discuss what happened at your bank? >> well, i don't know. but i will show up there next tuesday and i'm looking forward or i will be prepared to answer their questions and that will happen next news. >> have you gotten a call from warren buff snet. >> i talk to a lot of our constituents. >> but warren, very important. if i knew he backed you, i would personally feel better telling people to own the stock. >> jim, again, i'm not going to talk about any conversation
about any one investor but i'm looking forward to lead our company through this. >> is $125 million the right amount tore this kari hole said it who quit and what could be taken back? >> what i said before, a. >> thank you for coming in. it verifies you are the kind of guy i think you are to come shown the even though i know this is not the kind of action that i expect from wells fargo. or you. thank you much, jop. >> thank you. chairman and ceo of wells fargo. "mad money" back after the break. [phone buzzing] some things are simply impossible to ignore. the strikingly designed lexus nx turbo and hybrid. the suv that dares to go beyond utility.
how do you handle the uncertainty of a presidential election? when the gulp between the two candidates is so great the polls seem like they are tightening. i want to a panel by etrade on the street and it was stunning to listen to the lack of common ground. but here is some take awayes. first, the pure uncertainty after trump presidency be, he himself said he likes being
unpredictab unpredictable. you should sell any company that produces commodities you if you think trump will win because he seems eager to start a trade war with the chinese and that's ground zero for commodities. on the other hand if you think clinton will win you have two variables. you have to prepare for pain and health care. because it is clear she will take her cue from what i call the big three. being acknowledged as a pharma, and they had do everything they can to prevent drug companies pr raising prices. why these three? they are seen as putting through the most price increases while spending the least on r & d. but it will extend to the companies that do the most r & d and release price increase answers everyone else in the industries, panelist said, whoa. you have to expect that clinton would try to raise capital gain taxes but as long as ryan is
speaker of the house they will fight tooth and nail. elizabeth warren would have a huge input. you can only imagine the damage that warren could do. i wouldn't be surprised if she runs financial oversight subcommittee that would call for moratorium on bank cross selling. one account, that's it. because the recent egregious wrongdoing at wells fargo. that's only going to happen in the highly unlikely event that democrats stay in congress as long as republicans keep the house then divide a government under clinton. then have to lose very badly indeed lose the house. how about trump? here is a man who is literally courting a trade war with china. begging for it. they have a ton of companies that make phones in china so they ban apple. they need to build roads, so they ban cat. that's a communist party.
we have a number of consumer product in china. we got two big restaurant chains, starbucks and kfc. huge presence over there. say good-bye. does anyone think our railroads wouldn't be effected by trade. so much coca-cola goes to china. aircraft builders and their contractors, crushed. so much for boeing and united technologies who says the disadvantage of serving otis elevators. you think the chinese communist party cares about who does this stuff? well, if it's america they would. toing industrials would be impacted by the trade wars. he may want the trade war. what can i say? you can't hide the domestic companies because let's face it. minimum wage with hillary, if you get that wrong, wow. retailers and restaurants i don't think can you touch those stocks. if she gets a landslide then the corporate subsidies for clean energy. it would be a hillary special.
the only real common ground is defense. the fed might be over before the election, something i'm not sure about. suffice it to say unless we have a clear win earn unsinner stit one thing, the bain of all investor. when you see the volatility keep in mind that not all that is based on the fed or oil a lot of it is going to be the election even lack of common ground. and the fact polling has gotten tighter. all which could make for a treacherous couple of months until we get to november 8th. good panel. stay tuned. lightning round is next. for
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hit me. >> worried about penske. it has had a good run. i say ka ching. next. no, those are spekes. douglas in california. no, i need douglas, douglas. >> boo-yah to you. >> did you see that company last week? what a fabulous story. loved it. jason in florida. jason? >> how you doing? >> kss, your opinion? >> total systems is good. that the key.tkss, your opinion? >> total systems is good. that the key.ss, your opinion? >> total systems is good. that the key. >> that is the end of the lightning round. >> lightning round is sponsored by td ameritrade. ppens in the m. kid's a natural. but thinkorswim already lets you create custom alerts for all the things that are important to you. shhh.
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on a hideous day like today, i like to focus on what is definitely worth buying on the way down, okay? last night i told you the biggest splitters would go down hard in the sell-off. let's talk about a group crushing it this year. medical device stocks. roaring. roaring higher part because one subsection of the health care and investors feel safe putting their money in as they should. the maker pacemakers defibrillators, drug i alluding stint and various other cardio vat cue lar urology related
products and this company seems to be firing on all cylinders. the at end of july it was fabulous and they roll out lots of innovative products and the sub cutaneous defibrillatordefi. under the skin instead of in your chest. and plantable stroke prevention device. alternative to potentially dangerous blood thinner drugs. and boston scientific is the story that will keep working regardless of what the fed does. the hike isn't about to stop this one. won't stop someone who needs a pace maker from getting a pacemaker. this is the difference between life and death. that's why i think you need to check in on this stek. let's talk to the president of boston scientific. welcome to "mad money." i'm thrilled to have you because you have reinvented this company a year ago ways so thrilled that you could do 3 to 6% organic growth. here we are talking about 8 to
9%. seems like it is all done with innovation. >> yes. >> your ball. >> thank you. first of all we are super excited about our success. 25,000 colleagues around the world focussing on meaningful innovation. second quarter we grew 10%. 50 of 7 businesses growing double digits. this year guiding to it 00 basis points and strong double-digit. basis points and strong double-digit. >> and interventional cardiology, the watchman, and lotus, i need you to quickly describe why everyone in cardiology is buzzing about these three. >> great products. first of all synergy stint, market share leader, clinically proven to show a great healing benefit and easy for cardiologists to implant. and taking shares globally. another great product is the lotus valve. the lotus valve is a disruptive
aortic valve replacement. >> what was there before? >> typically valve answers third place player to come into the u.s. and in 2018. >> do have you something better than they did? >> we have a very disruptive product as lowest, called the peri valve leakage rate. it is very easy to control for physician. >> i don't want to slight endoscopy. this had limited growth, suddenly going from mid single growth to double-digit growth in a year. how did that happen? >> couple things. innovative portfolio that we have. our team has done a great job on emerging markets and half of our sales are outside the u.s. what we are doing is the general mark the market is large. to less invasive for thoracic and colon cancer. >> this sounds like it will save
the system money so neither political party is coming after boston scientific any time soon. >> we we look at innovation, clinical innovation and how do we help the health care system save money. a great example is the defb lator line. it is out of minnesota. they last ten years. so we lose a little bit financially on replacement psych aenl when batteries go out but it is better for hospitals and for patient. >> what about the mri issue? >> we just had our mri pacemaker approvaled in second quarter in the u.s. we grew that business 15% in quarter. guided strongly for second half of the year. so it is an important part -- >> unfortunately anyone who had to go for mri, pacemakers know, they won't include you. >> they will not. >> they will now. >> they will now. globally they can as well. >> i don't want it slight another division, neuro mod
lags. this sounds like something you are doing on chronic pain that can maybe stop what i record as the great untold ep dem knicks this country and fatal epidemic, which is addiction. addiction to pain drugs. >> yeah. a remarkable division. spinal cord stimulation. about 100 million patients alone suffer from pain. >> 100 million? that's 318 million in the country. >> and addiction is a big chronic problem for us. this is less invasive procedure that helps people get their life back. either back to work or back to recreation. it masks the pain signal's allows people to get back to work. >> why don't people know about this? they wouldn't risk oxycodone or black tar heroin. >> the mark set roughly about a billi billion, five. we are the market share leader
in the u.s., market share leader globally. this is a great alternative for patient. >> major health care insurers, are they coming along on this? >> yes. reimbursed. >> how do you continue to drive the innovation, there are people skeptical. it is impossible to keep up with this breakneck period of innovation or do have you much more coming that i don't know about? >> we have a lot coming. our financial brand for the shareholders is strong growth, unique operating improvement and double gps growth. when we look over the next five years today we grow in the core markets. we will enter markets of about 8 to $9 billion of new markets. and aortic valve replacement. parkinson's -- >> where are you on the -- unfortunately many of us know sufferers of parkinson's. there are thing that can mask it but nothing real -- my father had it. you can just watch it. is there -- you've got something?
>> this is a product that unfortunately is an cure for parkinson's. >> but maintenance. >> you manage the patients. we have enrolled our clinical trial if the u.s. we expect approval in late 2017. ehe is not recally it helps patients reduce tremor, to get their life back. we saw it in europe, rolled in the u.s. and we will launch it shortly. >> as many people like me, have lost their parents to things that you are curing, it is a better time. thank you. michael mahoney, chairman and ceo of boston scientistic. this is the stock you buy when you hear all this federal reserve nonsense about a quarter point. think boston scientific, will you? stick with cramer. ♪ ♪ the highly advanced audi a4.
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